https://www.taxtmi.com/caselaws?id=36812 The High Court ruled in favor of the assessee, upholding the Tribunal's decision to delete the interest addition of Rs. 1,24,000. The Court emphasized that income tax is levied on actual income, not hypothetical income, and noted that the amount due from the debtor was not recoverable due to his weak financial position. The Court disagreed with the revenue's argument based on the mercantile system of accounting and cited Supreme Court decisions supporting the assessee's position. The deletion of the interest addition was deemed justified, with no order as to costs. en-us Sat, 17 May 1980 00:00:00 +0530 Wed, 24 Mar 2010 16:46:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36812 The High Court ruled in favor of the assessee, upholding the Tribunal's decision to delete the interest addition of Rs. 1,24,000. The Court emphasized that income tax is levied on actual income, not hypothetical income, and noted that the amount due from the debtor was not recoverable due to his weak financial position. The Court disagreed with the revenue's argument based on the mercantile system of accounting and cited Supreme Court decisions supporting the assessee's position. The deletion of the interest addition was deemed justified, with no order as to costs. Case-Laws Income Tax Sat, 17 May 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36812